Our clients' situation
Our clients approached us to purchase a buy-to-let property through a limited company, which presented several layers of complexity. The company had four shareholders: two parents and their two children. The shareholding was split 50%, 20%, 20%, and 10%. Both children were first-time buyers and full-time students with zero income. There were also age-related challenges with one not meeting the usual minimum age requirement of over 21 years old together with the proposed mortgage term taking one of the parents to an age that raised succession planning concerns.
One parent is earning across three different arrangements (sole trader, partnership, and limited company), and the other taking a small sole trader income, making this a highly complex income profile. The latest SA302 was just outside most lender policies, although only by a matter of days. The deposit was funded via an intercompany loan from the limited company.
Alexander Hall's solution
After reviewing the market, our adviser placed the case with a lender that could accommodate these challenges. The lender agreed to ignore the 10% shareholder whose age was outside their normal criteria, and accepted written confirmation that neither of the full-time students would reside in the property. They carried out extensive underwriting on the income and the future impact of the intercompany loan, ultimately agreeing to accept the latest SA302.
Despite the intricate packaging and multiple underwriting queries, our adviser submitted a fully packaged case upfront, which meant the application progressed smoothly. The case went to offer within just one and a half weeks of submission, demonstrating the value of expert advice and thorough preparation when navigating multi-shareholder structures and layered income profiles.
To talk to one of our advisers about your mortgage needs, call us on 08000 38 37 36 or book an appointment today.
